Sec. 12-675. Nursing home tax. (a) For the purposes of this section: Secs. 12-676 to 12-684. Reserved for future use.
(1) "Commissioner" means the Commissioner of Revenue Services.
(2) "Department" means the Department of Revenue Services.
(3) "Nursing home" means any licensed chronic and convalescent nursing home or
a rest home with nursing supervision.
(4) "Gross revenue" means the total of (A) daily routine nursing home service
charges and (B) all other inpatient nursing home revenue, including ancillary service
charges of any nursing home or any related-party affiliate of such nursing home which
provides ancillary services to patients of the nursing home. For the purposes of this
section, a related-party affiliate shall not include a hospital as defined in section 19a-490.
(5) "Net revenue" means gross revenue less reductions resulting from the recognition of governmental and nongovernmental payors' contractual adjustments and from
accounts receivable determined to be worthless and actually written off as uncollectible
for federal income tax purposes.
(6) "Contractual adjustments" means the difference between charges imposed by
a nursing home and amounts reasonably realizable from third-party payors for the services for which such charges are made.
(7) "Routine nursing home services" means room accommodations, nursing care,
food services, institutional laundry services, housekeeping services, services related to
the use and maintenance of real property, social and recreation services and all other
allied and customary goods and services offered by the nursing home.
(8) "Ancillary services" means physical therapy, speech therapy and occupational
therapy services rendered to an individual patient to address a specific medical need.
(b) A tax is hereby imposed, with respect to the period commencing April 1, 1992,
and ending March 31, 1993, on each nursing home at the rate of one and seventy-five
one-hundredths of the net revenue of such nursing home for each calendar quarter.
(c) Each nursing home shall submit a return quarterly to the commissioner, applicable with respect to the calendar quarter beginning April 1, 1992, and each calendar
quarter thereafter, on or before the last day of the month immediately following the end
of each such calendar quarter, on a form prescribed by the commissioner, together with
payment of the quarterly assessment determined and payable in accordance with the
provisions of this section. Each nursing home shall determine gross revenue and net
revenue on the accrual basis of accounting in accordance with generally accepted accounting principles.
(d) Whenever such tax is not paid when due, a penalty of ten per cent of the amount
due or fifty dollars, whichever is greater, shall be added to the amount due and such
penalty shall immediately accrue, and thereafter such tax shall bear interest at the rate
of one and one-half per cent per month until the same is paid. The Commissioner of
Revenue Services shall cause copies of a form prescribed for submitting returns as
required under this section to be distributed throughout the state. Failure to receive such
form shall not be construed to relieve anyone subject to tax under this section from the
obligations of submitting a return, together with payment of such assessment within the
time required.
(e) The Commissioner of Revenue Services shall notify the Commissioner of Social
Services of any amount delinquent under this section and upon receipt of such notice
the Commissioner of Social Services shall deduct such amount from amounts otherwise
payable by the Department of Social Services to the delinquent nursing home.
(f) The tax imposed by this section shall not be considered an allowable cost for
the purpose of establishing a nursing home's rate under section 17b-340.
(g) The provisions of sections 12-548 to 12-554, inclusive, and section 12-555a
shall apply to the provisions of this section in the same manner and with the same force
and effect as if the language of said sections had been incorporated in full into this
section and had expressly referred to the tax under this section, except to the extent that
any provision is inconsistent with a provision in this section.
(May Sp. Sess. P.A. 92-16, S. 34, 89; P.A. 93-262, S. 1, 87.)
History: May Sp. Sess. P.A. 92-16, S. 34 effective June 19, 1992, and applicable with respect to revenues of nursing
homes realized on and after March 1, 1992; P.A. 93-262 authorized substitution of commissioner and department of social
services for commissioner and department of income maintenance, effective July 1, 1993.
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